Author: Jack Oduor

There is a Climate Funding gap of 40 billion dollars in blue carbon, yet no Kenyan firms are undertaking it. According to the World Bank, Kenya remains vulnerable to frequent climatic shocks that pose significant economic risks. The East African country has been gravely affected by changing weather patterns and a fall in disposable income available for necessities. Despite their considerable potential, Kenya is foregoing billions of dollars in untapped climate financing opportunities. While many startups are entering this sector, industry experts argue that the current figure remains insufficient to combat climate change adequately. Pangea Accelerator, an investment platform that…

The AfDB’s mandate for a three-year social bond was announced on Wednesday, 17th January 2024. This issuance is a significant highlight amid a dynamic week in the USD SSA markets, witnessing the launch of eight benchmarks totaling US$17.25 billion within a span of two days. This new three-year Social Benchmark is the Bank’s first global benchmark of the year. The African Development Bank has issued its first ever three-year social bond targeting to raise US$2 billion under its recently established Sustainable Bond Framework, which was launched in September 2023. Set to mature on February 25, 2027, the Sustainable Bond Program…

Cybersecurity, corruption, and policy shifts have been cited among the top issues that Kenyan businesses will have to confront in 2024. In 2022, Kenya suffered a loss of at least $153 million to cybercrime, which is projected to rise by 14 per cent annually. A new report ranks Kenya as the second most difficult country for businesses in EAC after South Sudan. Cybersecurity, corruption, and policy shifts have been cited among the top issues Kenyan businesses will have to confront in 2024. The latest Risk Barometer by underwriting giant Allianz, reveals that in Kenya’s complex and dynamic business environment, several…

Kenya’s debt repayment in 2023 was majorly from the Consolidated Fund.  The country has faced liquidity challenges due to uncertainty in accessing funding from global financial markets. Analysts, however, maintain that the practice of taking on debt to pay debt is unsustainable. The National Treasury has revealed that Kenya’s debt repayment surged to $3.69 billion (KSh600.73 billion) by December 2023. Despite an increase in revenue collection, Kenyans found little reason to rejoice as debt consumed 57 per cent of the government’s tax revenues, amounting to $6.14 billion (about KSh1.05 trillion). Only 43 per cent of the generated revenue remained for…

Rising volatility in Kenya’s Fixed Income Market derives from a combination of global and domestic factors. The yield curve soared fastest at the head and upper belly of the curve, rising by a cumulative 661bps on the three-month treasury bill. There is hope as it is anticipated, that a rebound in trading activity will happen in 2024. The Kenyan Fixed Income Market displayed remarkable flexibility last year to experience one of the most rapid annual increases in yields resulting in a notable inversion of the effective yield curve. According to financial experts, the rising volatility in the fixed income space…

In 2023, a significant investor sell-off led to a $15.5 million (KSh4.2 billion) decline in the Kenya stock market. During the review period, Safaricom’s market valuation declined, attributed in part to prolonged and price-agnostic portfolio outflows by foreign investors in favor of dollar-denominated assets. Utility Umeme Limited recorded the highest valuation gains throughout 2023, registering an impressive 115.6 percent return. Nairobi Securities Exchange-listed firms, including Safaricom PLC, British American Tobacco (BAT), and Cooperative Bank, emerged among the top counters experiencing the highest investor sell-off in 2023, a new trading report reveals. Over the past year, a consistent trend of investor…

International Finance Corporation targets specific projects in Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa. IFC’s $30 million (Sh4.8 billion), own-account investment will help Africa Infrastructure Investment Fund 4 Partnership (AIIF4) exceed its final close target of $500 million (Sh80.4 billion). A pan-African infrastructure private equity firm called the Africa50 Infrastructure Acceleration firm I is raising up to $500 million for investments Kenya is among six African countries that International Finance Corporation (IFC) will pump $30 million (about KSh4.8 billion) equity investment to fund works on essential infrastructure. The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of…

Egypt has secured $250 million to aid its battered economy after the elections held in 2023. The country has been struggling, with the economy remaining on life support, while the regime continues to plough on with mega projects. Africa Finance Corporation and ITFC have a successful joint track record in Islamic finance, previously providing a $50 million loan to Egypt and a EUR 25 million loan to Senegal in November 2022. Egypt has secured a $250 million loan from the Africa Finance Corporation (AFC) to better prepare for anticipated shocks, disruptions, or stress that the North African country may experience.…

Trade tensions within the EAC bloc have intensified lately, with neighboring countries taking adverse actions against each other. In the latest development, Tanzania is blocking passenger flights from Kenya Airways to Dar es Salaam, while Burundi has officially closed its borders with Rwanda. Elsewhere, Kenya has been pursuing trade deals with the European Union and the United States, leaving regional economies to play catch-up Heightened trade and political tensions between the East African member states are threatening to erode the gains of a free market and the dividends of a united bloc for a region expected to achieve the fastest…

Kenya’s electricity imports from its neighbours have more than doubled For years, Ethiopia has supplanted Uganda from position one, Kenya’s top source of power imports. The East African nation has revealed that it needs $5.3 billion to overhaul power transmission lines and forestall frequent blackouts. Kenya’s electricity imports from its neighbours have more than doubled in the past year amid increased demand and a slower pace of investment in energy infrastructure. Data by the Kenya National Bureau of Statistics (KNBS) said the country imported 706.9 million kWh of electricity from Ethiopia and Uganda in the first 11 months of 2023,…